Mitsubishi Pencil (7976) Q3 2023 earnings summary

Executive summary

• 9M revenue rose 6.0% YoY to ¥53,129m; operating profit increased 25.2% to ¥8,093m, supported by stronger sales margins.

• Full-year forecasts were raised for revenue, operating profit, ordinary profit and net income; the revision includes an expected special gain.

Financial highlights

• 9M gross profit was ¥27,133m, up 10.6% YoY; gross margin improved to 51.1% from 49.0%.

• 9M ordinary profit rose 21.1% YoY to ¥9,112m; net income attributable to owners rose 21.5% to ¥6,222m.

• 9M selling, general and administrative expenses increased 5.3% YoY to ¥19,040m.

Outlook and guidance

• FY2023 revenue forecast raised to ¥73,000m, up ¥2,500m or 3.5% from prior guidance.

• FY2023 operating profit forecast raised to ¥10,700m (+12.6%); ordinary profit to ¥11,500m (+10.6%).

• FY2023 net income forecast raised to ¥8,900m (+25.4%); EPS forecast is ¥163.50.

• 9M progress versus revised annual forecasts: revenue 72.8%, operating profit 75.6%, ordinary profit 79.2%, net income 69.9%.